Navigation

Tag Archives | Relationship

Avoid_Mistakes_of_Joint_Ventures

By on August 13, 2010 in JV

Video Training Unplugged

Avoid Mistakes of Joint Ventures

As you already know, joint ventures are a lucrative agreement for all parties involved. After all, they have the sole purpose of creating profits so they have to succeed. You may want to find a partner right away and start on your marketing campaign so you can both start making a lot of money. But what you need to know before enterting a joint venture agreement are some mistakes to avoid.

All too often, as an affiliate marketer, you may find someone seeking a joint venture partner to market their product. They are even willing to pay above the competition. This may make you want to jump on the opportunity before someone else. After all, if you can make the same sales you are already making but at a higher cut, why not? The problem is, if you are not willing to research a little on the product, you may find that you are stuck endorsing and promoting a product that is not worth anyone’s time let alone yours. While you can surely drop the campaign once you do find this out, you risk tarnishing your reputation and rapport with your clients or users.

Alternatively, if you are looking for an affiliate marketer to enter into a joint venture project or a peer within your niche, you should make sure that you are not only offering them a nice cut in the deal but also a quality product. Ask yourself if you would be comfortable marketing the same product to your users and if your product is really worth endorsing. If you are cross-promoting with a fellow peer in your niche, you would want them to give you a high quality product. You do not want your name to be mud in your niche. Repeat customers and a loyal fan base are key to generating a guaranteed income. If you tarnish that relationship, you will find it hard to build it back up. As relationships with your customers are key, it is also important that your joint venture partner be a reputable one.

Joint ventures are often short time. Many times, they are used for you to get your foot in the door or to promote a new product. Once you have developed a client base, you no longer need help in promotion that joint ventures offer. Additionally, some relationships just do not seem to work out. Whether it be due to lack of luster or charisma or desire to be in the joint venture agreement any longer, you and your partner should forsee a potential break in the relationship and have an opt-out option for such a case. You want to be able to end the joint venture project amicably.

Joint ventures are the key to e-commerce success and promotions. If you have already weighed the pros and cons and come to the conclusion that a joint venture is the right venue for you, then all you have to do is assure that you approach them properly. A successful joint venture comes down to the overall structure of the team.

0

Joint_Venture_Accounting

By on July 19, 2010 in JV

Video Training Unplugged

Joint Venture Accounting

A joint venture is an association similar to a partnership, the only difference being the time scope of the project that is joint venture is entered into for a limited and specific object. Because joint ventures are considered relatively short in relationship value, a ‘real’ partnership would be a unnecessary hassle. As a joint venture is still a short-term partnership nonetheless with both costs and profits, it is still important to be able to keep accurate bookkeeping. A couple of accounting methods can be implemented in a joint venture scenario.

The more obvious method would be to have a set of books that are separate from the actual corporation and only used in joint venture documentation. The books are taken as usual and so no real risks are seen. In a more short term joint venture project, separate books are not really needed nor provided.

Participants of a joint venture team are much like salesmen for a company; they go out on the company’s behalf and spend money on goods, clients, or needs to make your company a success. They file an expense report with you so you have documentation of both their efforts and expenses. A joint venture partner must be able to do the same; provide documentation of their purchases for the joint venture.This is achieved much like individual accounting. The partner logs his expenses in a separate book addressing the joint venture. Once all have reported their expenses, they are jointly marked on a statement known as a memorandum statement. The profits and losses are then decided off this statement and divided accordingly.

The profits and losses will vary depending on the relationship of the team. If one partner is solely the marketer, he will report more profits than the one with the product to market. The profits of his books will be equivalent to the losses of the other’s books. This is how the books are reconciled easily.

A joint venture is still a business agreement and should be approached as such. This includes the accounting side of business. Keeping an accurate record not only helps you see what is owed or gained, but whether or not the efforts of the joint venture are a success or not. As the books are also kept on the group as a whole, it is easier to determine that it is because of the group that X-amount of profit is being made or X-amount of loss is being taken. At this point, you can then decide whether or not to continue with a joint venture as opposed to a partnership which you are in for the long haul.

0